(L. OBJ. 4) Computing EPS and P/E ratio [5-10 min] Use the financial statements of Low’...

(L. OBJ. 4) Computing EPS and P/E ratio [5-10 min]

Use the financial statements of Low’s Companies in Short Exercise 14-5. Additionally, Low’s has issued 0.8 billion common shares.

Requirements

1. Compute earnings per share (EPS) for Low’s. Round to the nearest cent.

2. Compute Low’s companies’ price/earnings ratio. The price of a share of Low’s stock is $67.50.